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This paper compares the compositions and definitions of monetary aggregates being published by the 30 countries belonging to the Organization for Economic Co-operation and Development (OECD) and 10 non-OCED countries. These countries are divided into 5 groups according to the similarity of their monetary aggregates and their membership in the European Union (EU) and/or OECD.

The first three groups are countries in the EU who have adopted the European Central Bank's definitions of the monetary aggregates with some variations. Their monetary aggregates are discussed together and presented in one table. The monetary aggregates for the countries in the other two groups are very heterogeneous and each country is discussed separately.

The criteria used to classify and define monetary aggregates by individual countries are compared and summarized. Variations among the countries' monetary aggregates resulting from emphasis on different criteria for money definitions are also addressed.

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I. Introduction
This paper compares the compositions and definitions of monetary aggregates being published by the 30 countries belonging to the Organization for Economic Co-operation and Development (OECD) and 10 non-OCED countries. These countries are divided into the following five groups according to the similarity of their monetary aggregates and their membership of European Union (EU) and/or OECD:

I.1. The European Economic Monetary Union (EMU), called the euro area

The EMU comprises 12 members of the 25 European Union countries that have adopted a single currency (the euro). They are Austria, Belgium, Finland, France, Germany, Greece (joined in 2001), Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain. 1 The European Central Bank (ECB) is the central bank for the EMU, which issues the euro and has been responsible for conducting monetary policy for the EMU since January 1, 1999.

I.2. The Exchange Rate Mechanism II (ERMII) members

The ERMII comprises the 8 EU countries with their currency linked to the euro but not currently adopting the euro. They are Denmark, Estonia, Cyprus, Latvia, Lithuania (will officially adopt the euro on January 1, 2007), Malta, Slovenia (see footnote 1), and Slovakia (will adopt the euro on January 1, 2009). However, only Denmark and Slovakia are members of OECD.

I.3. Other EU members

This group comprises the 5 members of EU which neither adopt the euro nor link their currency to the euro. They are Czech Republic, Hungary, Poland, Sweden, and the United Kingdom (U.K.).

I.4. Members of OECD but not EU

This group consists of 11 members of OECD but not EU. They are Australia, Canada, Iceland, Japan, Korea, Mexico, New Zealand, Norway, Switzerland, Turkey, and the United States (U.S.).

I.5. Remaining non-OECD countries

This group consists of 4 large non-OECD Asian countries, which are China, India, Philippines, and Thailand.

The first three groups are the 25 countries in the EU who have adopted the ECB's definitions of the monetary aggregates with some variations. Their monetary aggregates are discussed together and presented in one table. Because the monetary aggregates for the remaining two groups (15 non-EU countries) are very heterogeneous, a separate discussion and table is devoted to each country.

The paper is organized as follows: In the next section, the criteria used to classify and define monetary aggregates by individual countries are presented. In the third section, the similarities and differences among the monetary aggregates in the EMU and each of the non-EU countries are highlighted. The types and compositions of these monetary aggregates are summarized in table 1. The final section presents the text summary for the main features of the monetary aggregates in the EMU, the ERMII and other EU members, and individual non-EU countries. In the appendix, tables are provided for the important features of the monetary aggregates for the EMU and other individual countries (table 1 for the EMU, table 2 for the United States, tables 3 - 12 for each of the other 10 countries in the 4th group, and tables 13-16 for each of the 4 countries in the 5th group).

II. Criteria for Monetary Aggregate Classifications
The criteria used to classify and define monetary aggregates by individual countries are summarized in the following nine categories:

II.1. Degree of liquidity

Financial assets with high liquidity are included in narrower measures. Financial assets with lower liquidity are included in broader measures. For example, currency and demand deposits are included in M1, while savings and time deposits are included in the aggregates broader than M1.

II.2. The size of the denomination or minimum deposits

Financial instruments requiring small denominations or low minimum levels are in narrower measures, on the assumption that these tend to be held by households (see category 4 below). Financial instruments requiring large denominations or high minimum levels are in broader measures or not included at all. For example, U.S. small time deposits and retail money market mutual funds (MMMFs) are included in M2, while large time deposits and institutional MMMFs are excluded (table 2).

II.3. The original maturity of the deposits

Maturity may not matter at all, as in the United States and Australia. However, some countries place deposits with short original maturities in narrower money. The ECB (table 1) puts savings redeemable up to three months and time deposits with agreeable maturity up to two years in M2, but excludes savings and time deposits with longer maturities from each of its three monetary aggregates. In Korea (table 7), financial instruments (deposits, RPs, and cover bills, etc.) are allocated between M2 and M3 entirely according to their original terms of maturity, with the cutoff at two years.

II.4. The characteristics of the asset holders

Personal holdings are in narrower money than non-personal holdings. For example, in Canada (table 4), personal term deposits are included in M2 while non-personal term deposits are included only in M3.

II.5. Foreign currency denominated deposits

Foreign currency deposits are excluded from the monetary aggregates by most countries or included only in broad money, with some exceptions. The ECB (table 1) and Norway (table 10) place deposits denominated in any currency in each of their aggregates. In Mexico, deposits denominated in U.S. dollars are included in each monetary aggregate, but those denominated in other foreign currencies are excluded. Foreign currency deposits are included only in M3 in Canada, only in M4 in Philippines, and in the monetary aggregates other than M1 in Japan. In Turkey, foreign currency deposits are excluded from M1, M2 and M3, but included in its M2Y, M2YR, M3Y and M3YR.

II.6. The types of money issuers

Central banks are the issuers of currencies. Seven central banks (in EMU, Cyprus, Estonia, India, Norway, Switzerland, and Turkey) also issue M1-type deposits for money holders, with the first three issuing M2-type deposits as well.

II.7. The types of financial institutions

In most cases, deposits with commercial banks are in narrower money than those with non-bank depository institutions, while deposits with other non-depository financial institutions, such as post offices and life insurance companies, are either excluded or included only in broad money. For example, all deposits at post offices are only in liquidity aggregates in India, and only in money broader than M2+CDs in Japan.

II.8. The scope of money holders

Money holders usually consist of the private non-bank (or non-depository) residents, except Korea and Turkey. In Korea, currency and deposits held by its central government and its central bank are included in each of its monetary aggregates. In Turkey, official deposits of central government agencies are included in aggregates broader than M2.

II.9. Location of depository institutions

Deposits at oversea branches of domestic depositories may be excluded or included only in broader money than those at domestically located depository institutions. For example, the U.S. monetary aggregates exclude dollar denominated deposits at offshore branches of the U.S. banks, but Mexican M4 include resident and non-resident deposits in Mexican banks' agencies abroad.

III. Comparison of Monetary Aggregates for Individual Countries
As discussed above, there are various criteria which can be used to define and classify monetary aggregates. However, individual central banks usually use only some of these criteria to define their monetary aggregates. Differences in individual central banks' emphases on criteria for money definitions result in variations among the monetary aggregates for individual countries. The similarities and differences among the monetary aggregates for individual countries are summarized below. A table highlighting types and compositions of the monetary aggregates for individual countries is also provided.

III.1. As shown in the following table, the composition of M1 for all countries is essentially the same. In other word, M1 consists of currency and demand and other checkable deposits held by money holders. Canada is a notable exception, placing checkable deposits at credit unions and other non-bank depositories in M1+.

III.2 The composition of monetary aggregates broader than M1 varies substantially. The variations mainly result from emphasis on different criteria for money definitions. The compositions of monetary aggregates classified entirely based on term of maturity are very different from those classified solely according to types of money issuers. Nonetheless, savings deposits and most time deposits are generally included in M2.

III.3. Variations among monetary aggregates also arise from di

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